6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? ? 7 Income Statement (2017) Credit Sales 1.500 Cost of Goods Sold 7 Taxable income Taxes (34%) 2 Net Income Dividend (33.33%) Retained Eamings ? Balance Sheet (2017) Cash Accounts Payable Accounts Receivable 7 Short-Term Debt 125 Inventory ? Long-Term Debt 845 Fixed Assets 2.092 Common Stock 845 Retained Earnings 1132 Total Total ? 2 Main assumptions Sales has increased by 25% in 2017 'Cost of goods sold is 80% of sales in the income statement at all times. Al other items are independent of sales - Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales - Current ratio is 3. accounts receivable turnover is 2. Inventory turnover 15 4. accounts payable tumover is 5 at all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances Throughout the year 2017 o the company raised funds through short-term debt first. the company raised the remaining funds through 50% long-term debt and 50% equity offering common stock) 1.000 TL 842 TL 868 TL 974 TL Dier 7- Refer to Question 6. What is the cash conversion cycle in year 2017? (1 year = 360 days) 342 days 162 days 198 days 18 days Dier: 8- Refer to Question 6 and 7. Suppose that the company wants to double each turnover rates in year 2018. With this improvement, the company would like to pay some of its short-term and long-term debts. Assuming that all main assumptions are still valid in 2018 except for the fund raising activities (the last two bullets), what would be the total debt in the 2018 balance sheet? 604,99 TL 1297,01 TL 501,24 TL 417,49 TL